New Delhi, Sept. 3 -- Sugar stocks defied the broader equity market's weakness on Tuesday, many of them ending with double-digit gains as investors celebrated the government's decision to lift its cap on ethanol production from sugarcane, with effect from November.

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These companies will soon be able to produce more ethanol from sugarcane to meet rising demand. While this move is welcome, the sharp upswing in investor expectations of the industry's future reflects the outsized influence of central policies on private businesses.

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